Micro evidence of the effects of R&D on labour productivity for large international R&D firms

Luigi Aldieri, Michele Cincera, A. Garofalo and Concetto Paolo Vinci

International Journal of Manpower, 2008, vol. 29, issue 3, 198-215

Abstract: Purpose - The aim of this paper is to assess the effects of traditional inputs and firms' R&D capital on labour productivity growth. Design/methodology/approach - The study measures the effects of the traditional inputs on firms' productivity growth, through four procedures: OLS in first differences, within group, GMM in first differences and GMM system. Findings - Whatever the specification considered, the more efficient estimates obtained from the GMM system show a similar effect of the firm's R&D stock upon its labour productivity performance. Practical implications - The results suggest that physical capital plays a more prominent role for European firms than for US ones, while employees are more productive in the USA. Originality/value - By presenting some empirical evidence on the effects of R&D on labour productivity, at the firm level, the present study makes two main contributions to the existing literature. First, a unique firm‐level database for European and US firms is used. It is self evident that firms in these countries operate in different economic and institutional settings; as a consequence the results identify some robust common effects concerning the two areas considered (the USA versus Europe) at the micro level. Second, service and manufacturing sectors are merged.

Keywords: Employee productivity; Productivity rate; Research and development; Mathematical modelling (search for similar items in EconPapers)
Date: 2008
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eme:ijmpps:v:29:y:2008:i:3:p:198-215

DOI: 10.1108/01437720810878888

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